SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : SOUTHERNERA (t.SUF)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: VAUGHN who wrote (4154)7/23/1999 11:57:00 AM
From: gemsearcher  Read Replies (1) of 7235
 
Hi Vaughn.

Sometimes a stocks price is discounted because there is concern in the market that the underlying asset(s) are not "financeable". A PP that removes this concern can often lead to share price appreciation to such an extent that the dilutive effect is offset. This is an oversimplification/generalization and there are other equally important factors that lead to price appreciation , not the least of which is the underwriting firm(s) not wanting to look bad when they place the securities.

Regards.

P.S. Russett , albeit squished , said it better.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext